FCo Rural Estates Newsletter Spring 2022 - Flipbook - Page 11
3 – Legal agreements for biodiversity net gain
Enforcement
We have not yet had a steer from the planning authorities on the consequences of failing
to carry out works. Covenant strength is likely to be a factor which should put you in a
strong position. Insurance and bonds may be necessary.
Tax
If land comes out of agriculture for, say, the creation of a nature reserve, this may have
implications on the availability of agricultural property relief for inheritance tax purposes.
Conclusion
Few BNG agreements exist, the relevant sections of the Act are not in force, supporting
regulations are awaited and the approach the planning authorities will take is unknown –
but we are watching developments with eagle eyes. Even if biodiversity credits become
the norm, (so there is less need for 30-year agreements), long-term management
agreements for the delivery of public goods will become increasingly common. If, say,
the Environment Agency wishes periodically to be able to flood land to take the pressure
off towns, or a water company has a programme to improve water quality, they will
expect a long-term commitment from the landowner with management responsibilities.
In the meantime, maintaining an ongoing dialogue with your tenants remains as
important as ever, watching particularly for opportunities to take land out of tenancies
and the ability to break stewardship and other schemes, to ensure you preserve flexibility
for the future.
Rural Estates Newsletter
Spring 2022
11